Topic: Non-Current Assets Held for Sale and Discontinued Operations Multiple Choice: 7 An entity makes a formal plan to sell its building that has novalue in use. The building has a carrying amount of P1,000,000and a fair value less costs to sell of P800,000. The building iscurrently being marketed at its current condition at a price ofP1,000,000. The entity's management believes that it issignificantly more likely than not that the sale will beconsummated within 12 months after the end of the reportingperiod. How should the entity present the building in itscurrent statement of financial position?a. As property, plant and equipment measured at P1,000,000.b. As noncurrent asset held for sale measured at P1,000,000.c. As property, plant and equipment measured at P800,000. -d. As noncurrent asset held for sale measured at P800,000. will not take place until ABC Co. finishes constructing itsb. DEF Co. plans to sell its machinery. However, the sale willd. UVW Co. plans to sell its building, classified as investmentproperty measured under the cost model, as is andnot take place until after DEF completes its productionc. XYZ, Inc. plans to sell its delivery truck. However, the salewill not take place until after XYZ, Inc. finishes a major5. The criteria under PFRS 5 for classifying an asset as "held forsale" are most likely met in which of the following instances?ABC Co. plans to sell its office building. However, the salewill not take place until ABC Co. finishes constructing 1ea.new office building.b. DEF Co. plans to sell its machinery. However, the salenot take place until after DEF completes its productiobacklog.aoverhaul on the truck's engine.property measured under the cost model,without any renovations.6. Noncurrent

Hi student Since there are multiple questions, we will answer only first question. Non current…

7. An entity makes a formal plan to sell its building that has no value in use. The building has a carrying amount of P1,000,000 and a fair value less costs to sell of P800,000. The building is currently being marketed at its current condition at a price of P1,000,000. The entity's management believes that it is significantly more likely than not that the sale will be consummated within 12 months after the end of the reporting period. How should the entity present the building in its current statement of financial position? a. As property, plant and equipment measured at P1,000,000. b. As noncurrent asset held for sale measured at P1,000,000. c. As property, plant and equipment measured at P800,000.- d. As noncurrent asset held for sale measured at P800,000.

7. An entity makes a formal plan to sell its building that has no value in use. The building has a carrying amount of P1,000,000 and a fair value less costs to sell of P800,000. The building is currently being marketed at its current condition at a price of P1,000,000. The entity's management believes that it is significantly more likely than not that the sale will be consummated within 12 months after the end of the reporting period. How should the entity present the building in its current statement of financial position? a. As property, plant and equipment measured at P1,000,000. b. As noncurrent asset held for sale measured at P1,000,000. c. As property, plant and equipment measured at P800,000.- d. As noncurrent asset held for sale measured at P800,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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